Larsen & Toubro (OTCMKTS:LTOUF) and EMCOR Group (NYSE:EME) Critical Comparison

EMCOR Group (NYSE:EME) and Larsen & Toubro (OTCMKTS:LTOUF) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings and Valuation

This table compares EMCOR Group and Larsen & Toubro”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EMCOR Group	$16.99 billion	2.01	$1.27 billion	$32.15	24.12
Larsen & Toubro	N/A	N/A	N/A	$58.73	0.70

EMCOR Group has higher revenue and earnings than Larsen & Toubro. Larsen & Toubro is trading at a lower price-to-earnings ratio than EMCOR Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.6% of EMCOR Group shares are owned by institutional investors. Comparatively, 1.1% of Larsen & Toubro shares are owned by institutional investors. 0.7% of EMCOR Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for EMCOR Group and Larsen & Toubro, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EMCOR Group	0	1	8	1	3.00
Larsen & Toubro	0	0	1	0	3.00

EMCOR Group presently has a consensus target price of $965.86, suggesting a potential upside of 24.55%. Given EMCOR Group’s higher possible upside, research analysts clearly believe EMCOR Group is more favorable than Larsen & Toubro.

Dividends

EMCOR Group pays an annual dividend of $1.60 per share and has a dividend yield of 0.2%. Larsen & Toubro pays an annual dividend of $13.09 per share and has a dividend yield of 32.0%. EMCOR Group pays out 5.0% of its earnings in the form of a dividend. Larsen & Toubro pays out 22.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. EMCOR Group has increased its dividend for 5 consecutive years.

Profitability

This table compares EMCOR Group and Larsen & Toubro’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EMCOR Group	7.74%	35.49%	14.12%
Larsen & Toubro	N/A	N/A	N/A

Summary

EMCOR Group beats Larsen & Toubro on 12 of the 14 factors compared between the two stocks.

About EMCOR Group

EMCOR Group, Inc. provides construction and facilities, building, and industrial services in the United States and the United Kingdom. It offers design, integration, installation, start-up, operation, and maintenance services related to power transmission, distribution, and generation systems; energy solutions; premises electrical and lighting systems; process instrumentation; low-voltage systems; voice and data communications systems; roadway and transit lighting, signaling, and fiber optic lines; computerized traffic control systems, and signal and communication equipment; heating, ventilation, air conditioning, refrigeration, and geothermal solutions; clean-room process ventilation systems; fire protection and suppression systems; plumbing, process, and high-purity piping systems; controls and filtration systems; water and wastewater treatment systems; central plant heating and cooling systems; crane and rigging services; millwright services; and steel fabrication, erection, and welding services. The company also provides building services that covers commercial and government site-based operations and maintenance; facility management, maintenance, and services; energy efficiency retrofit services; military base operations support services; services for indoor air quality; floor care and janitorial services; landscaping, lot sweeping, and snow removal services; vendor management and call center services; installation and support for building systems; program development, management, and maintenance for energy systems; technical consulting and diagnostic services; infrastructure and building projects; modification and retrofit projects; and other building services, including reception, security, and catering services. In addition, it offers refinery turnaround planning and engineering; welding; overhaul and maintenance; instrumentation and electrical; and renewable energy services. The company was incorporated in 1987 and is headquartered in Norwalk, Connecticut.

About Larsen & Toubro

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and minerals, and metals. The Hydrocarbon segment provides front-end design, modular fabrication, procurement, project management, construction, installation, and commissioning for the oil and gas industry. The Power segment offers coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages. The Heavy Engineering segment manufactures and supplies custom designed, engineered critical equipment and systems to the fertilizer, refinery, petrochemical, chemical, oil and gas, and thermal and nuclear power industries. The Defence Engineering segment designs, develops, produces, and supports equipment, systems, and platforms for the defense and aerospace sectors. This segment also designs, constructs, and repairs/refits defense vessels. The Others segment engages in the realty, smart world, and communication businesses, including military communications; marketing and servicing of construction and mining machinery and parts; and manufacturing and sale of rubber processing machinery. This segment also operates digital platforms, such as SuFin for B2B e-commerce; and EduTech offers engineering and technology related content. Larsen & Toubro Limited was founded in 1938 and is headquartered in Mumbai, India.